News

UK Chamber: War on Open-Loop Scrubbers More About Commercial Pressures than Scientific Evidence
by Ship Bunker
Thursday, April 18, 2019

But the Chamber will support any review of wash discharge standards if necessary, says Policy Director Anna Ziou.

Voyage Planning, Equipment Failures Cause Carnival's Pollution Woes
by The Maritime Executive
Thursday, April 18, 2019

Carnival Corporation ships illegally discharged more than half a million gallons of oil and waste and burned heavy fuel oil in ports around the world in the year after the corporation's conviction for illegal dumping, according to a court-appointed monitor. 

According to the monitor's report, some instances of pollution appear to be attributable to a failure to develop and follow effective voyage plans and others to equipment failure. This includes unexpected scrubber shutdowns and oil leaks from lifeboats and tenders as a result of corroded fuel tanks, incomplete engine combustion and mechanical failures. Many of the oily water spill incidents resulted from separator equipment malfunctions and failure of oil content meters. Oily water separators often needed to be taken out of service for extended periods of time.

The corporation is on probation as a result of Princess Cruise Lines pleading guilty in 2017 to seven felony counts arising out of vessel pollution from Caribbean Princess and efforts to conceal that pollution, one count of conspiracy, four counts of failure to maintain accurate records and two counts of obstruction of justice.

U.S. District Judge Patricia Seitz published the previously confidential monitor's report last week. In the 205-page report, the monitor records hundreds of incidents from April 2017 to April 2018. The Miami Herald reviewed each incident and found that 24 were for illegally dumping sewage, food waste or oil; 19 were for illegally burning heavy fuel oil in protected areas; and more than 150 were the result of items like furniture accidentally going overboard. Carnival reported the violations to authorities directly or noted them in their internal records. 

The monitor's report notes that Carnival has substantially implemented the year-one requirements of the Environmental Compliance Plan that was required to be implemented, such as installation of seals and locks, delivery of training and development of a sampling program. This has required the efforts of hundreds of employees on ships and on shore. Carnival voluntarily extended the scope of the Environmental Compliance Plan to cover all of its vessels, not just those covered by the court's order.

However, the monitor notes a blame culture and a complex corporate structure as hindering opportunities for improvement. “The company's internal investigations are critically flawed,” states the monitor's report. “There is no consistent, reliable means to investigate incidents or near misses and identify root causes that can lead to meaningful corrective actions.”

Recognizing a weakness, Carnival engaged DNV GL to review its investigation process, and the classification society offered its suggestions in May 2018. The monitor will track progress over the coming year.

The Caribbean Princess conviction was not the first pollution case involving a Carnival entity; in 2002, Carnival pleaded guilty to six felony counts after falsifying records to conceal pollution on six ships. At the time of the incidents on the Caribbean Princess in 2005, the corporation was on probation and operating under an Environmental Compliance Plan for specific vessels. In 2017, Princess was sentenced to pay a $40 million penalty, serve a five-year probation and fund a court-appointed monitor.

The Miami Herald reports that Seitz said she regretted not being able to send Carnival's top executives to jail. She will decide whether the corporation’s behavior merits a probation violation at a hearing in June and requested that Chairman Micky Arison and President Arnold Donald be there to answer her questions. She threatened to temporarily block the company from docking its cruise ships at U.S. ports.

Donald said the corporation will do what it takes to ensure it meets the probation expectations and will strive to be best in class on environmental compliance. “Our environmental responsibility has been and remains a top priority for the company,” he said. “Our aspiration is to leave the places we touch even better than when we first arrived. This is in the best interest of our guests, our company and the oceans upon which we travel. We look forward to clarifying any issues and demonstrating our commitment.”

On any given day, over 100 Carnival ships sail with over 300,000 passengers and crew throughout the world.

Trump Administration Issues New Restrictions on Cuba Travel
by The Maritime Executive
Thursday, April 18, 2019

On Wednesday, the Trump administration announced new measures to roll back the Obama-era normalization of relations with Cuba. The changes include unspecified new travel restrictions and an unprecedented decision to allow private lawsuits against foreign companies over the Cuban government's expropriation of property in the 1950s. 

"The Department of the Treasury will implement further regulatory changes to restrict non-family travel to Cuba," Bolton said. "These new measures will help steer American dollars away from the Cuban regime or its military and security services, who control the tourism industry in Cuba." 

The new measures include further restrictions on individual "people-to-people exchanges" for non-family tourist visitors to Cuba. This form of travel will still be allowed for American tourists accompanied by U.S.-based, authorized sponsors, like cruise ship operators. 

Additionally, the State Department has compiled a list of 180 Cuban companies with which U.S. travelers and other entities are no longer permitted to do business. These firms include hotel operators, rum makers, marinas and other establishments catering to tourists. Notably, the list also includes the sprawling economic development zone at the Port of Mariel, one of the most important areas for foreign investment on the island. 

"We have strengthened our Cuba policies to channel economic activity away from the Cuban military and to encourage the government to move toward greater political and economic freedom for the Cuban people," said Treasury Secretary Steven Munuchin in a statement. 

The State Department has also opened the door for a new category of private lawsuits against foreign companies operating in Cuba. Cuban expatriots whose property was seized when the Castro regime took power will be able to sue foreign entities that benefit from that property in U.S. courts. The development could lead to billions of dollars in claims against multinational corporations based in the EU, Canada and other allied nations. 

"For the first time, claimants will be able to bring lawsuits against persons trafficking in property that was confiscated by the Cuban regime. Any person or company doing business in Cuba should heed this announcement," Pompeo said. "Those doing business in Cuba should fully investigate whether they are connected to property stolen in service of a failed communist experiment. I encourage our friends and allies alike to likewise follow our lead and stand with the Cuban people."

ZIM Joins TradeLens
by The Maritime Executive
Wednesday, April 17, 2019

ZIM Integrated Shipping Services has signed on as a member of TradeLens, a blockchain-enabled digital shipping solution jointly developed by A.P. Moller - Maersk and IBM.

TradeLens uses blockchain technology to enable trust between multiple trading partners including carriers freight forwarders, customs officials and port authorities. TradeLens ecosystem members get a single shared view of a transaction without compromising confidentiality.

ZIM has a corporate vision to promote technological innovation in all aspects of its operations. By joining TradeLens, it anticipates cost savings to the company and its customers by enabling greater transparency and more efficient processes.

Eyal Ben Amram, ZIM CIO, said: “ZIM endorses a proactive approach of promoting and investing in innovative digital solutions, such as the pioneering blockchain-based electronic Bill of Lading initiative, in collaboration with Wave Inc, and the recent investment in Ladingo, a ground-breaking e-commerce solution.”

A.P. Moller - Maersk and IBM introduced TradeLens in August last year with 94 organizations already participating. Early adopters include more than 20 port and terminal operators across the globe, including PSA Singapore, International Container Terminal Services Inc, Patrick Terminals, Modern Terminals in Hong Kong, Port of Halifax, Port of Rotterdam, Port of Bilbao, PortConnect, PortBase and terminal operators Holt Logistics at the Port of Philadelphia. They join the global APM Terminals' network in piloting the solution at over 230 marine gateways worldwide.

The gains from blockchain technology are estimated to be $3 trillion worldwide by 2030. The technology is anticipated to help ease the administration of intellectual property rights and enhance government procurement processes. Other potential benefits include cross-cutting opportunities to reduce trade costs, enhance supply chain transparency and open up new trading opportunities for micro, small and medium-sized enterprises.

IMO2020: Charterparties Advised to Make Separate Contractual Arrangements for Scrubber Equipped Tonnage
by Ship Bunker
Wednesday, April 17, 2019

Existing time charterparties not necessarily drafted with the upcoming regulatory change in mind, says The Standard Club.